Answer:
We require 9.67% return per year to achieve 300,000 in the future
Explanation:
we need to solve for the rate at which a current value of 57,000 dollars will generate 300,000 dollars after 18 years:
Principal 57,000.00
time 18.00
Amount 300,000
![r=\sqrt[18]{300,000/57,000} -1](https://tex.z-dn.net/?f=r%3D%5Csqrt%5B18%5D%7B300%2C000%2F57%2C000%7D%20-1)
r = 0.096653034
A bear would be an example of a consumer
Answer:
11.21%
Explanation:
the opportunity cost of capital can be determined by calculating the weighted average cost of capital
WACC = [weight of equity x cost of equity[ + [weight of debt x cost of debt x (1 - tax rate)] + [weight of preferred stock x cost of preferred stock]
0.3 x 10.76 + (0.5 x 13.91) + (0.2 x 0.65 x 7,87)
3.228 + 6.955 + 1.231
11.21%
Answer:
$330
Explanation:
The computation of the dividend income received as on July 31 is shown below:
where,
Total number of shares purchased is
= 100 shares + 200 shares
= 300 shares
And, the dividend per share is $1.10
So, the dividend income received is
= 300 shares × $1.10
= $330
We simply applied the above formula to determine the dividend income received
Answer:
the amount of earnings retained by the firm does not affect market price or the P/E
Explanation:
A rate of return refers to the net gain or loss of an investment over a particular time period which is typically a year. It is expressed as a percentage of the investment's initial cost.
The rate of return is referred to as the annual return if the time period is typically a year.
If a firm has a required rate of return equal to the ROE, <u>the amount of earnings retained by the firm does not affect market price or the P/E</u>
